In the 1980s and 90s, Los Angeles suffered an epidemic of bank robberies, driven by a small number of "super-robbers" like the Yankee Bandit, Casper and C-Dog. These criminals robbed prolifically and influenced copycats, demonstrating the "Law of the Few" - that social epidemics are driven by the extraordinary actions of a small number of people. The context also enabled the epidemic, with the number of bank branches in the U.S. tripling from the 1970s to 1990s.

Section: 1, Chapter: 1

Author: Malcolm Gladwell

Healthcare mogul Philip Esformes ran a massive Medicare fraud scheme out of his Florida nursing homes. At his sentencing, Rabbi Sholom Lipskar argued Esformes was corrupted by moving from Chicago to Miami, saying he "lost himself" and "went down a wrong path" after arriving in Florida. Suggesting that the "overstory" - the attitudes and narratives - of Miami's culture shaped Esformes' descent into crime.

Section: 1, Chapter: 2

Author: Malcolm Gladwell

The authors compare the organizational structure and economics of the crack gang to that of McDonald's:

• Like McDonald's, the gang has a franchise-like model where regional managers ("board of directors") take a cut of profits from the local gang chapters they oversee
• The gang has a clear hierarchy and pay scale, with wages increasing at each level (though still meager for most)
• Workers at the bottom (drug dealers or burger flippers) earn the least but are the most visible to the public
• The promise of rising up the hierarchy motivates low-paid workers to stay loyal despite poor base pay

So while street-level crack dealing seems like a drastically different profession than fast food, the underlying business models and worker incentives are surprisingly similar. The allure of future riches entices the many to toil for low wages.

Section: 1, Chapter: 3

Author: Steven D. Levitt, Stephen J. Dubner

In the mid-1990s, crime in New York City plummeted rapidly and dramatically - the murder rate fell by 2/3 in 5 years. Gladwell argues this epidemic of crime reduction tipped due to a combination of small, subtle factors:

• Fixing broken windows and cleaning up graffiti - sending a signal of order
• Cracking down on fare-beating in the subways
• Rebuilding the organizational structure and management of the police

These changes in environment and context made people more likely to obey the law. The decline was too rapid to be explained by big slow variables like the economy, drug use, etc. "The Power of Context says that human beings are a lot more sensitive to their environment than they may seem."

Section: 1, Chapter: 1

Author: Malcolm Gladwell

The authors draw an analogy between the invention of crack cocaine in the 1980s and the invention of nylon stockings in the 1930s. Both innovations made a previously expensive luxury item (powder cocaine or silk stockings) much cheaper and more widely available.

Crack was like the "fast fashion" of the drug world - it democratized what had been an elite indulgence. Suddenly cocaine went from a premium product favored by the rich to an affordable mass market good. This unleashed a devastating wave of addiction, violence, and community destruction, especially in inner city neighborhoods.

The flood of cheap crack served as a disruptive innovation much like digital photography, MP3s, or e-books. It upended the market and brought both benefits (a less expensive alternative for consumers) and steep costs (decimated rivals and traditional institutions). The invention of crack created entirely new markets and reshaped the culture in profound ways.

Section: 1, Chapter: 3

Author: Steven D. Levitt, Stephen J. Dubner